Ideal Arris Opportunities Possess Some or All of the Following:
- Off-market or poorly marketed transactions
- Strong local operating sponsor and/or manager
- High barriers to entry markets
- Discount to replacement cost
- Value added execution strategy
Arris seeks to generate superior risk-adjusted returns through deploying capital in a number of formats:
Joint Venture Equity Capital – Providing control joint venture equity for smaller transactions with 3rd party operating sponsors.
Preferred Equity or Mezzanine Capital – Providing capital to bridge between senior debt and common equity in transactions where limited senior leverage is available.
Sponsor Equity Capital – Providing majority equity capital for smaller transactions where Arris serves as the sponsor or co-sponsor
Arris targets transactions its investment programs which possess some or all of the following characteristics:
- Located in Western U.S. markets with outsized prospects for population and job growth
- Assets with a value-add execution strategy (redevelop, reposition and/or re-tenant)
- Opportunities to create cash flow rather than buy it, particularly in major metro areas
- Key metric is unleveraged stabilized yield on cost; seeking 150+ basis points spread over exit cap rates
- Proprietary sourcing capabilities based on 45+ combined years of relationships with owners, operators, brokers and lenders